White House denies any deal with tobacco industry

CHICAGO (CNN) -- The White House said Tuesday it would consider letting tobacco regulations be enforced by an agency other than the FDA, only if tobacco companies agree to legislation enacting all the proposed restrictions.

White House Chief of Staff Leon Panetta, appearing on CNN's Larry King Live, denied that a deal had been struck with tobacco companies that would allow them to avoid being controlled by the federal Food and Drug Administration.

"There's no agreement that's been resolved here," Panetta said. Tobacco companies so far have shown no interest in agreeing to the restrictions, including those curtailing advertising aimed at children, he said. (374K AIFF or WAV sound)

The new regulations, which President Clinton announced Friday, are due to be phased in over two years and include a number of measures aimed at stopping young people from taking up smoking.

The tobacco industry has vowed to fight the regulations in court, arguing that the FDA does not have the legal authority to regulate nicotine as an addictive drug.

Reuters contributed to this report.

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